Solana price has pulled back this month as its network growth has slowed amid the ongoing crypto market crash. SOL token plunged to $146 today, June 19, down by 21% from its highest point in May.
Why Solana Price Has Crashed
Solana’s price has pulled back for four main reasons. First, the decline is in line with the ongoing crypto market crash amid jitters in the Middle East, where Israel is battling with Iran. This war will lead to higher inflation as crude oil and shipping costs jump. Higher inflation means that the Federal Reserve will find it hard to cut interest rates soon.
Second, the SOL price has plummeted as most Solana meme coins have crashed, negatively impacting its network activity. Data shows that the market capitalization of all Solana meme coins has decreased to $9.6 billion, down from last month’s high of over $12 billion. Most of these tokens, like Dogwifhat, Pudgy Penguins, and Fartcoin, have all plunged by over 20% in the last ten days.
Third, the ongoing Solana meme coin crash has affected decentralized exchanges (DEX) on the network. DeFi Llama data reveals that protocols in the network have handled $42 billion this month, down from $97 billion the previous month. This volume is much lower than the year-to-date high of $262 billion.
Further, the volume of stablecoin transactions on Solana has dived. Total transactions in the last 30 days stood at $189 billion, down by 56% from a month earlier. Similarly, the number of transactions fell by 16% to 189 million, while the supply fell by 9.2% to $10.1 billion.
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Solana Price Prediction
The daily chart shows that Solana’s price has pulled back in the past few weeks, moving from a high of $187 in May to $146. It has dropped below the 50-day and 100-day Exponential Moving Averages (EMA).
On the positive side, the SOL price has formed a bullish flag pattern. The slanted flagpole started at $95.36 and rose to $187. It is now forming the flag section, which is made up of a descending channel.
Therefore, it is likely that the Solana price will bounce back and possibly retest the upper side of the flag pattern at $187.30. This pattern is approximately 26% above the current level, and a break above it will likely indicate further gains, potentially reaching $250.
Bitcoin Pepe Token Sale is Surging
Meanwhile, Bitcoin Pepe, a crypto project that aims to disrupt Solana as the king of meme coins is surging. Data on its website shows that Bitcoin Pepe has gone viral and raised over $15.16 million in the past few months.
Bitcoin Pepe hopes to replicate Solana’s success in the meme coin industry by leveraging Bitcoin’s technology. It will do that by building a Bitcoin layer-2 network focused on meme coins.
A key part of Bitcoin Pepe’s solution will be the PEP-20 standard, which will let users launch their meme coins on Bitcoin. As such, there is a likelihood that it will gain market share as analysts expect the growth trajectory to accelerate.
Bitcoin Pepe’s token sale has surged after the developers unveiled BitMart as the first exchange that will list it. It will reveal the next exchanges later this month.
Bitcoin Pepe has also surged due to the ongoing 30% bonus and staking inflows. Over 201 million BPEP tokens have been staked, with rewards worth over 65 million given. Buy Bitcoin Pepe here.
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